The Truths About Customer Experience

How to increase revenue & save costs

By Chris Pattaswww.chrispattas.com

June 2013

“Price is not the main reason for customer churn. It is actually due to the overall poor quality of customer

service.” Accenture, 2008

2

“A customer is 4 times more likely to defect to a competitor if the problem is service-related than price

or product-related” Bain & Company

3

“The probability of selling to an existing customer is 60-70%. The probability of selling to a new prospect is 5-20%.”

Marketing Metrics

4

“For every customer complaint there are 26 other unhappy customers who have remained silent.” Lee Resource

5

“A 2% increase in customer retention has the same effect as decreasing costs by 10%.”

Leading on the Edge of Chaos, Emmet Murphy & Mark Murphy

6

“96% of unhappy customers don’t complain, however 91% of these will simply leave and never come back.”

1Financial Training

7

“A dissatisfied customer will tell between 9-15 people about their experience. Around 13% of dissatisfied

customers tell more than 20 people.” White House Office of Consumer Affairs

8

“Happy customers who get their issue resolved tell about 4-6 people of their experience.” White House Office of Consumer Affairs

9

“70% of buying experiences are based on how the customer feels they are being treated.” McKinsey

10

“55% of customers would pay extra to guarantee a better service.” Defaqto research

11

“Customers who rate you 5 on a scale from 1 to 5 are six times more likely to buy from you again, compared

to ‘only’ giving you a score of 3.” Telefaction data research

12

“It takes 12 positive experiences to make up for one unresolved negative experience.” “Understanding Customers” by Ruby Newell-Legner

13

“Loyal customers are worth up to ten times as much as their first purchase.” White House Office of Consumer Affairs

14

“A 5% reduction in the customer defection rate can increase profits by 5-95%.” Bain & Company

15

“It costs 6-7 times more to acquire a new customer than to retain an existing one.” Bain & Company

16

“eCommerce spending from new customers is on average less than half that of repeat customers.” McKinsey

17

Can you afford not to improve Customer Experience

in your Business?

By Chris Pattaswww.chrispattas.com

June 2013